China reveals plans for stimulus package

Monday

Nov 24, 2008 at 12:01 AM

BEIJING (AP) - Trying to dispel doubts about the true size and effectiveness of a giant economic stimulus package, Beijing rolled out an eye-popping figure to show its determination to spend its way out of trouble: a $1.4 trillion shopping list of possible investments.

The figure, reported by state television yesterday, represents an avalanche of proposals by local leaders for new roads, airports, railways and other facilities. There was no word on how many might go ahead.

But the announcement reflected the government's focus on assuring companies and consumers about the scale of its response as it tries to shield China from a global slowdown by revving up domestic spending.

"People worry about China's ability to support growth. By showing this number, the government certainly has demonstrated its ability to put together investment projects to hold up growth," said Citigroup economist Yiping Huang.

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